Coutts Settles AIG Bond Dispute With 2012 Games Deputy Boss

Dec. 13 (Bloomberg) -- Royal Bank of Scotland Group Plc’s
Coutts & Co. settled a claim by the deputy chairman of the
organizing committee for the 2012 London Olympics that the
lender improperly sold him American International Group Inc.
bonds.

The bank reached a deal with Keith Mills during a London
trial over the dispute, Caroline Wells a spokeswoman for Coutts
said in an e-mailed statement, saying the bank was “pleased to
have resolved this issue.”

Mills, who created the air miles loyalty program, invested
65 million pounds ($104.8 million) in single-premium U.K. life-assurance bonds sold by AIG in 2007, his lawyers said in
documents filed in London court. Mills lost about 7.5 million
pounds on the investment, his lawyers said at a Dec. 6 hearing.

Matthew Fletcher, a spokesman for Mills, declined to
comment on the settlement.

Coutts was fined 6.3 million pounds in November 2011 by the
Financial Services Authority for not warning clients about the
risks of investing in the bond fund.